GBP/USD could move higher to 1.3220 – UOB

Following the recent price action, Cable could attempt a move to 1.3220, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our view of ‘further sustained GBP strength is not expected’ was incorrect as GBP jumped another 100 pips overnight. Despite overextended conditions, GBP may have enough to take on 1.3170 before any consolidation begins. On the downside, support is at 1.3070 and only a move below 1.3020 would indicate that the rapid up-move of the past two days has come to an end.”

Next 1-3 weeks: “Our last rhetoric was that ‘downward pressure has eased but there is still a slim chance that GBP could dip below 1.2955’. GBP continued to recover strongly and touched a high of 1.3153 overnight. An improving upside momentum, if sustained, could bring GBP higher towards 1.3220. On the downside, support is at 1.3000 and only a further move to 1.2960 would indicate that GBP has moved back into a sideway trading phase.”